To avoid wage-loss awards in workers' comp cases, closely follow the rules

Under the Arkansas workers’ compensation statute, injured employees may receive an award for their loss of wage-earning capacity. One alternative is for the employer to make a bona fide job offer that will pay at least as much as the individual was earning before the injury. The Arkansas Supreme Court recently made clear, however, the offer must guarantee enough work hours to ensure weekly pay won’t be reduced.

Facts

Leroy Calhoun worked for the Area Agency on Aging of Southeast Arkansas (AAA) as a part-time employee driving a van for Meals on Wheels. While driving an AAA van, he crashed and suffered severe neck and other physical injuries, which required extensive treatment including physical and occupational therapy.

A year after the accident, Calhoun’s physician determined he had obtained maximum medical improvement with a 24% permanent partial-impairment rating to the whole body. The physician noted, however, "any return to work would have to consist of a sit down job at a chair or wheelchair level such as paperwork or driver dispatch/coordination job. He would not be able to carry objects or drive a vehicle."

Shortly thereafter, the AAA’s insurance carrier faxed Calhoun to let him know the AAA could accommodate his restrictions and had work he could begin performing immediately. When he didn’t respond, the employer sent him a letter three months later stating it had light-duty work for him. Most important, the specific duties and hours he would work were never discussed.